E-Commerce Analysis: What Happened In Live Broadcast

In this epidemic, the physical stores were greatly affected. Just when the industry saw the vigorous development of live broadcast with goods, offline stores of brand clothing were closed at home. Even international famous brands such as Nike and Zara, as well as domestic La chapel, had to close stores on a large scale.

Since the advent of online shopping, more than 90% of the brand clothing stores are facing a difficult business situation. Although some brands are also actively seeking transformation, but the attitude of muddling along is still a common phenomenon. Until the arrival of the epidemic, only detonated all the fuse of the clothing industry entity store.

Since we have seen the decline of offline stores for a long time, why do well-known brand clothing still don't want to repent, but still need to carry out the traditional store mode? This is not because of the fear of change, but because the money of consumers was too easy to earn in the past, it was easy to change from thrifty to extravagant, and from extravagant to thrifty.

Net red belt goods after the price rise, cheat ghost

Clothing industry is not only a meager profit, but also a huge profit. The key lies in the pricing of wholesalers and brands. A garment with a factory price of more than ten yuan can be sold to the wholesalers for hundreds of yuan. Therefore, only by maintaining information asymmetry can we make some profits. The offline stores of brand clothing do not play a role in balancing the price, but maintain this information asymmetry to obtain high profits.

"It's too hard to get the Internet business license of famous brands like Nike and Adidas. Users like to go to flagship stores. The flagship stores of these big brands have official background. Whether it's the purchase channel or the discount rate, it's incomparable for wholesalers." Li Jing, the e-commerce boss (not his real name), tells me that he prefers to be a Guochao brand than an e-commerce agent of brand clothing, because that means higher price freedom.

"Brand clothing is very contradictory to e-commerce. They both want to make money and are afraid to damage the brand image. Therefore, the integration of online and offline prices is created to protect the interests of offline stores." Li Jing introduced that in order to be a clothing e-commerce, it is necessary to attract customers' consumption through a series of promotion and live broadcast activities. However, the rigid price system of brand clothing makes the products less attractive.

Understand note in some brand clothing e-commerce flagship stores, only some old clothing will have discount, and customer service is generally robot reply, can give the discount is given priority to.

This is not to say that brand clothing does not attach importance to e-commerce channels. Taking Nike as an example, it not only appointed the former eBay executive as the next CEO, but also redefined the market position in the financial report of 2019, placing e-commerce next to direct marketing, while the wholesalers have fallen behind to the fourth place.

During the epidemic period, Li Jiaqi, an online celebrity, cooperated with Nike for the first time, focusing on shoes for girls' sports. New live broadcast forms, beautiful product styles and 200 yuan coupons are also attractive enough.

Although the live broadcast was very successful, Li Jiaqi and Nike co-operative products were sold out, but the shoes did not sell well in other channels, because careful consumers found that after the live broadcast, the shoes actually went up in price.

The Nike store on the fourth floor of Joy City, Xidan, has opened with the relief of the epidemic, but the flow of people is very rare. The clerk also said that because of the production and inventory problems, some of the new stores this year didn't have any stock, especially this kind of net red shoes. It's recommended that you understand the notes and go to the official flagship store to buy them. For this kind of e-commerce, people feel helpless.

In the end, e-commerce failed to save Nike. Affected by the epidemic, Nike not only closed about half of its direct stores in China, but also closed all stores in Europe and America. As a direct result, Nike lost $790 million in the first quarter, and its market value shrank by more than 10 billion dollars.

Although the Internet has been shouting, but understand notes that for brand clothing, online has always been the enemy of its profits. On the one hand, it is easier to sell fake goods online. On the other hand, the more developed the network information, the higher the chance for consumers to obtain the real price of goods, the more difficult it is for businesses to sell their products at high prices. Li Jiaqi can bring goods to Zara lipstick, but has not sold any Zara clothing.

The so-called online and offline integration, synchronous discount, has become the blockade of product prices, but there are always flaws in this blockade, unsold products still need to be discounted to clear inventory, so that consumers' trust in the brand is greatly reduced.

Brand clothing once made a lot of money by speculating on consumer psychology and careful price control, but consumers have become more and more mature under the influence of e-commerce, and their marketing skills are no longer impulsive and blindly following.

Not to mention the price monitoring function of the major e-commerce platforms, so that businesses do not dare to increase prices easily. In essence, the quality and workmanship of the products, represented by the well-known international brands, are getting worse and worse. Even the old models are renovated. In the era of developed network information, it is difficult for businesses to operate.

It's hard for consumers who have lost their feelings to be impulsive for a certain commodity. The price reduction will hurt the brand, and if you don't, you will feel sorry for the quality of the product. This is a dilemma.

Playing Internet and playing clothes are not at the same level

Zhuang Shuai, founder of Bailian consulting, has done consulting services for many brands of clothing. In his opinion, it is not that these bosses who have worked in the market for many years do not understand the changes in consumer demand and the value of the Internet, but that they are hard to reverse the old business model.

"We always think that we can get the favor of consumers by scale operation and brand marketing. No matter how bad the product is in the warehouse, I don't know Zhuang Shuai said.

Understand notes that the consumption concept of the Internet era, is already who can best drive the rhythm of the topic, the most able to play resonance, who will be more brilliant.

The founders of some new fashion brands in China are not from the clothing industry, and even the products are not comfortable and ergonomic design. However, they understand the Internet marketing strategy and the interests of young people. Even during the epidemic period, they have been making social communication reputation fission by creating public topics and bringing goods online, making products the first choice of young consumers.

When it comes to guochaofeng, we have to mention Wu Yifan, the king of goods. All his clothes will be quickly "picked up" and sold out of stock. In the new Chinese rap, Wu Yifan's shoes have been in short supply for a long time.

These Guochao brands also have their own pain points, that is, the vitality of the brand is not sustainable, and it can not be compared with the old brands in terms of brand influence and technical content. However, when these brands are brilliant, the founders have successfully sold their brands to realize financial freedom, and the stories of wealth explosion also promote the birth of more Guochao.

According to McKinsey's fashion status report, 90% of the young generation value goods and brands, and whether they agree with their own values. For the brand, this is a great opportunity. By focusing on the hot topics related to the brand and transmitting the brand value and voice, it can drive the emotion and identity of consumers, so as to increase sales.

Understand notes that, when brand clothing is still preparing seasonal goods, offline stores discount to deal with the backlog of goods during the epidemic period, the small-scale and fast-changing Guochao brand has stirred up consumers' emotions with various Internet marketing ideas through ultra-high commodity iteration speed, and their reactions to consumption trends are not at the same level.

The improvement of e-commerce channels also makes it possible to deliver goods quickly and deliver one-stop service. "The tide in the morning can get home in the afternoon". The timely and rapid online shopping experience and the channel opened Guochao flagship store are eroding the only dignity of offline stores of brand clothing.

For example, sheen, which has flowers in the wall and fragrance outside the wall, has a simple way to rise overseas. It carries out efficient logistics through cross-border e-commerce platforms, uses online red tape to influence users' minds, and draws customers through independent websites and mobile phone clients.

Zaein is known for its high turnover rate in two weeks. Through the establishment of e-commerce sites, Sheen has a strong inventory turnover capacity. These offline stores, which are entrusted with the responsibility of transit warehouse, can make the goods reach customers at the fastest speed.

Thanks to the data analysis ability of Internet marketing, sheen can decide which items to add according to consumers' purchase feedback, and can take out more products to test market reaction. According to Sheen's business plan, the top up rate is 50% and the unsalable rate is only about 10%.

With the best cost control, a higher probability of popular products, cheaper, more choices and more addictive consumption, behind the booming of Guochao brand business, it is also the description of Zara and other brands' clothing in China that has been declining and almost all domestic stores have been closed.

The market rules have changed, but the brand clothing giants do not perceive the direction of the tide surging. Compared with the mental impact on the Post-70s and 80s, they have not quickly "dealt with" the generation after 90 and 00.

Consumption left, store right

"In the past, when consumers went shopping, they focused on their own needs and the quality of their clothes. Now they are looking at the brand style and shopping fun of the store, or social needs. This requires store upgrading and scene creativity."

Fu Yifu, a senior researcher at Suning Financial Research Institute, told me that store renovation needs a lot of money, but some brand clothing itself is on the verge of crisis, and they can't afford the cost of this transformation.

A brand leader of a clothing listed company made an account to understand the notes. Taking Zhiying store as an example, if a store with an area of about 60 square meters is to be made into a characteristic store, it is necessary to conduct a market survey on the surrounding consumer layer. The decoration style is divided into different styles, such as trend, student party, community-based and class members, and make targeted transformation.

Only the preliminary market research and renovation, it will take nearly a month and at least 400000 yuan to invest. If the store is changed to a star location in downtown area, the cost will be more than tripled. In addition, we need to provide more products for this store, improve customer arrival time, and greatly increase costs from new product selection to complete supply chain.

"We have thousands of stores. In the first half of the year, more than 100 stores have been renovated, and another 200 stores will be built in the second half of the year. The overall transformation is impossible." The person in charge of the brand lamented that most of the time, if you don't reform, you will die. If the cost pressure is too high after the transformation, you may even die faster. You can only do it slowly step by step.

Understand notes that it is precisely because of the large scale and long decision-making time of brand clothing that the transformation cost is high and the consumption demand is out of line. At the same time, Guochao brand has begun to settle down. Many stores of "native turtle" in the past have integrated into the consumption scenes of more young people, which has become the leader of domestic trend and fashion, further squeezing the survival space of brand clothing.

In the field of children's clothing and mother and baby supermarket, many Guochao brands have realized the strategic transformation of "encircling the city from the countryside". The offline stores have gradually moved from the street side stores to the core areas of the fashion business circle. There are not only commodity sales and experience areas, but also children's game rest areas and parent lecture areas. They have become scene stores integrating consumption and entertainment.

Understand notes that people's demand for going out shopping has changed to pan entertainment, but the function of clothing stores is still very single, it is difficult to meet the needs of consumers for entertainment and leisure. Unless there is purposeful consumption for brand demand, the time to shop will be greatly shortened.

      However, compared with the consumption of fresh food in the store, consumers can not choose to buy fresh food in a long time, and it is not possible for consumers to buy fresh food in the same time.

Another example is IKEA, a Swedish home furnishing retailer, but it has the potential of China's online popularity. Experiential marketing and supply chain management are just the tip of IKEA's iceberg. After discovering the essence of what Chinese consumers eat, IKEA's food area has expanded from small ice cream and hot dogs to a large restaurant that accounts for nearly a quarter of the total space.

Consumers have not become smart and harsh because of the arrival of Internet e-commerce, but have new consumption trends. Stores that can't meet this new consumption trend can't attract customers even with the blessing of e-commerce, because when consumers step into the door, they already feel bored.

[Conclusion]

Although Internet thinking has been put forward for many years, it is a pity that most brand clothing and offline physical stores have not grasped this transformation opportunity. They simply use e-commerce flagship stores as the facade, or engage in some online and offline brand interaction activities that are difficult to have flow. As a result, a sudden outbreak of the epidemic, directly broke the brand clothing carefully packed entity store story.

Domestic clothing consumption has changed from food and clothing consumption to fashion, culture, brand and social trend consumption. The clothing industry is not sunset, and offline stores will not die out under the impact of e-commerce. When brand clothing can't harvest consumers through price dividend, and can't play the brand of fashion and fast consumption, there are still multiple paths to choose from, such as Internet marketing and scene consumption.

It's just that the road of self innovation is a little long, and not any brand can hold on to the end.